Ex-FBI Agent Admits Stealing $2.47 Million in Crypto

Patrick Steven Yaroch, 37, pleaded guilty Thursday to electronic fraud and money laundering before the Alexandria federal court. The former counterintelligence agent diverted $2,474,380.66 in cryptos from FBI systems, using credentials seized in 35 investigations.

Confidential accesses transformed into personal crypto wallet

The former agent knew well the workings of the institution. Between 2017 and early 2025, he worked in the Boston division, within a team charged with a hostile nation-state. In February 2025, he joined the counterintelligence division. He could then access systems containing crypto credentials recovered by the FBI.

These accesses gave him the ability to open wallets belonging to persons targeted by investigations, foreign state actors, and even a wallet created by the FBI for an operation.

However, Yaroch had begun exploiting this information as early as December 2024, before his transfer. His method barely varied: he transferred cryptos, exchanged them for other digital assets, then multiplied the movements between different accounts to complicate the tracking of funds. A technique reminiscent of some money laundering cases involving hackers and crypto mixing services.

In total, investigators recorded about 100 transfers spread over 35 cases, amounting to $2,474,380.66.

But the damage far exceeds the stolen sum. Yaroch’s operations also compromised investigations targeting criminal groups and foreign states. They notably exposed sources and methods used by the FBI to gather intelligence.

From money laundering to a vineyard project in Portugal

Yaroch did not simply move funds. Between November 25, 2025, and January 13, 2026, he transferred about $93,082 to one account before distributing this money among various expenses: credit cards, car, and loan repayments.

For the rest, he was considering a life change. According to judicial documents published by the US Department of Justice, he even asked ChatGPT about the best ways to grow his money and which European Union country to settle in.

The chatbot’s suggestion? Buy a vineyard in Portugal. A rather ambitious reconversion project for someone who had just diverted millions of dollars.

He then began preparing his move. On June 15, 2026, he gave power of attorney to Portuguese lawyers so they could obtain a tax identification number and access his financial portal. He was also planning a trip in September 2026.

A theft that also compromised federal investigations

The authorities announced the case through Theophani K. Stamos, first assistant U.S. attorney for the Eastern District of Virginia, and Daniel S. Wierzbicki, head of counterintelligence at the Washington office. Judge Patricia Tolliver Giles accepted the guilty plea.

It was not the first time Yaroch admitted illegal transfers. In August, he had already admitted moving about one million dollars without authorization. The investigation ultimately revealed an amount two and a half times higher.

Beyond the fraud, this case raises an embarrassing question about the management of digital assets seized by authorities. Holding the private keys to a wallet is not enough: access control is also necessary to prevent investigators from becoming suspects themselves.

Yaroch now faces up to 20 years in prison. A case that reminds us that the security and custody of digital assets do not rely solely on technology but also on the trust placed in those who handle it.